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Say Goodbye to Charging by The Hour!
7 Really Good Reasons to Switch to Project-Based Fees
One of the biggest missteps that new entrepreneurs make is charging by the hour. They research the prices of their competitors and presto! They arrive at a price in the middle.
Selling your time by the hour leads you down a perilous path making it almost impossible to turn a profit. After all, your income is limited by your time.
7 Reasons Why You Must STOP Selling Your Time by the Hour Switching to project fees is a win/win for you and your client because:
1. You Get Paid on Value Delivered – Remember: it’s not about the time; it’s about the value and the change you bring. It doesn’t matter if you solve a client’s problem in 5 minutes or 5 hours. The value is in the solution!
2. Clients Share Key Info – Great business relationships are the result of sharing information. If your client fears that every moment they speak, they’ll be charged for the privilege, they tend to be short and abrupt with data. Charging by the project allows your relationship to blossom.
3. Clients Budget Better – Clients love when they know how much the total cost is. You budget and they budget accurately without any surprises.
4. You Close the Sale Faster – It’s much easier to quote a prospect a fee than an estimate that might escalate.
5. You Build Trust Faster – Have you ever worked with an attorney and gotten the “it depends” answer? It’s frustrating, right? No one wants to feel as if their money is an open spigot to spend.
6. Prevents Time-Tracking Nightmares – If you’re charging by the hour, how much do you charge for answering a text? Or an email? How about if you take your client to lunch; is that billable? Project fee pricing ends the no-man’s zone.
7. Creates Better Outcomes – Since both of you are focused on the goal, not the time it takes, you’ll find a higher degree of success. And, isn’t that what it’s all about?
What’s your experience in switching to a project fee? As I’m sure I’ll hear, many professionals can’t easily implement charging a project vs. an hourly fee, but if you can, I guarantee you won’t look back.
To your sizzling success,
Liz